Behavioral Drivers of Energy Efficiency Adoption: Evidence From a Digital Field Experiment

• In Event: Electricity Markets, Pricing, and Utility Structure

Abstract

Despite unprecedented federal investment in energy affordability through the Inflation Reduction Act (IRA), participation in energy efficiency programs remains uneven, particularly among low-income households. While prior research has identified financial constraints, information barriers, and structural inequities as key drivers of energy poverty, less is understood about the behavioral mechanisms that influence household engagement with available programs. This study addresses this gap through a randomized digital field experiment that evaluates how different incentive structures and messaging strategies affect participation in energy efficiency programs. The experiment is conducted through a large-scale marketing campaign deployed across multiple U.S. states, reaching approximately 1,000 households. Participants are randomly assigned to different treatment groups that vary both in the type of incentive offered and the framing of program information. Treatment arms include direct financial incentives (e.g., small cash rewards), energy rebate framing (e.g., highlighting eligibility for federal and utility subsidies), savings-based messaging (e.g., emphasizing annual cost reductions), and behavioral nudges such as urgency, eligibility certainty, and process simplification. A control group receives neutral informational content. The primary outcomes of interest include click-through rates, platform engagement, and completion of a virtual energy audit, providing real-time behavioral data on how households respond to different policy-relevant signals. The experimental design allows for causal identification of the relative effectiveness of each intervention. In addition, the study examines heterogeneous treatment effects across income levels, housing tenure (renters versus homeowners), and geographic regions, with a particular focus on low-income and energy-burdened populations. Preliminary hypotheses suggest that immediate and certain incentives (e.g., small guaranteed rewards) may be more effective in driving initial engagement, while simplified messaging and reduced administrative burden may be critical for conversion into meaningful action. Conversely, large but complex incentives, such as federal rebates, may underperform due to informational and procedural barriers. This research contributes to the policy literature by providing causal, behaviorally grounded evidence on the drivers of energy program participation. The findings have direct implications for the design of public programs aimed at reducing energy burden, suggesting that optimizing communication strategies and reducing friction may be as important as increasing financial incentives. More broadly, the study demonstrates how digital platforms and field experimentation can be leveraged to improve policy effectiveness and equity in program delivery.

Author

• Majid Ahmadi, Georgia Institute of Technology
  Presenting Author